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THE ENTREPRENEURIAL ECOSYSTEM AND THE PERFORMANCE OF MICRO AND SMALL ENTERPRISES (MSEs) IN AMHARA REGION, ETHIOPIA: THE POLITICAL-LEGAL PERSPECTIVE

Author

Listed:
  • MULUGETA CHANE

    (University School of Applied Management, Punjabi University, Patiala, India)

  • HEENA ATWAL

    (University School of Applied Management, Punjabi University, Patiala, India)

Abstract

All other parts of the entrepreneurial ecosystem in any country are governed by the political and legal aspects of the system. This study examines the integrated effect of the entrepreneurial ecosystem’s political-legal subsystem on the performance of MSEs based on system theory and the mediating role of entrepreneurial competence, based on a resource-based view. There has been no detailed examination of the entrepreneurial ecosystem of MSEs in Africa in general, and Ethiopia in particular. Although the political-legal aspects of the entrepreneurial ecosystem have a major effect on both entrepreneurial competency and MSE’s performance, the relationship between entrepreneurial competencies and MSE performance was found to be insignificant. The role of entrepreneurial competency in mediating the relationships between policy and business performance and other business environments and business performance was shown to be insignificant. The study suggests that the policies designed by the government for MSEs should be flexible enough to affect other aspects of the entrepreneurial environment, such as the economic and social dimensions. Finally, additional studies in the field are encouraged to clarify the discrepancies in the findings concerning the relationships between entrepreneurial competencies and the performance of SMEs.

Suggested Citation

  • Mulugeta Chane & Heena Atwal, 2023. "THE ENTREPRENEURIAL ECOSYSTEM AND THE PERFORMANCE OF MICRO AND SMALL ENTERPRISES (MSEs) IN AMHARA REGION, ETHIOPIA: THE POLITICAL-LEGAL PERSPECTIVE," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 28(03), pages 1-24, September.
  • Handle: RePEc:wsi:jdexxx:v:28:y:2023:i:03:n:s1084946723500206
    DOI: 10.1142/S1084946723500206
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